The Cost of Manufacturing a Molded Part Is Related to the Quantity

question 222

Multiple Choice

The cost of manufacturing a molded part is related to the quantity produced during a production run. When 100 parts are produced, the cost is $300. When 400 parts are produced, the cost is $2700. What is the marginal cost of
The function?

• A) $8.00 per part
• B) $9.00 per part
• C) $6.00 per part
• D) $0.13 per part

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Definitions:

Master Budget

An all-encompassing financial planning document that consists of various individual budgets, which detail a company's financial goals, strategies, and operational plans.

Finished Goods

These are products that have completed the manufacturing process and are ready to be sold to customers.

Finished Goods

Items that have finished being manufactured and are prepared for purchase.

Beginning Inventory

The worth of merchandise ready to be sold at the beginning of a financial period.